(Reuters) – Ratings agency S&P revised https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2842888 South Africa’s outlook to “positive” on Friday, saying it reflects favourable terms of trade and a path toward contained fiscal expenditure for the country.

S&P upgraded its outlook from “stable” and affirmed the “BB-/B” foreign currency as well as “BB/B” local currency ratings on South Africa.

“Recent favourable terms of trade in South Africa have improved the external and fiscal trajectory, while the country’s reasonably large net external asset position, flexible currency and deep domestic capital markets provide strong buffers against shifts in external financing,” S&P said in its report.

S&P said it expects South Africa’s fiscal deficit to remain elevated, but gradually narrow to 5% of GDP by fiscal 2025.

According to Thursday’s forecast by the central bank, Africa’s industrialized nation will see its economic growth slow down to 1.7% in 2017. This follows a 4.9% increase last year.